Musk's Terafab chip facility breaks ground in Texas

Published Aug 7, 11:00 AM UTC

SpaceX and Tesla have officially begun construction on the Terafab semiconductor manufacturing complex in Grimes County, Texas. The initial phase, using Intel's 14A process technology, requires a $16.8 billion investment. The completed campus will encompass over 100 million square feet of manufacturing space, making it three times larger than Samsung's Pyeongtaek campus. The facility is designed to exclusively produce AI inference processors for Tesla's Optimus humanoid robots and Cybercab autonomous vehicles, as well as high-power processors for SpaceX's space-based data centers. Unlike conventional fabs, Terafab will vertically integrate logic, memory, packaging, and testing operations under one roof to shorten production cycles. The project is expected to employ at least 3,000 people, with 60-80% from local counties. Water will be sourced from Gibbons Creek Reservoir with on-site treatment and recycling.